All COE premiums rise; mainstream cars rise 3.4%, large cars up 1.4%
Observers say spike in motorcycle premium – nearly 12% – is due to combination of increased demand ahead of Hari Raya Puasa
Add BT as a preferred source
[SINGAPORE] Certificate of Entitlement (COE) premiums increased across the board as the two main car categories posted small increases, while the motorcycle category jumped almost 12 per cent.
The latest bidding round, which closed on Wednesday (Mar 18), saw Category A rising 3.4 per cent or S$3,670 to S$111,890.
The category applies to mainstream cars that have engines of up to 1,600 cc in capacity or with up to 97 kilowatts (kW) of power, or for electric vehicles (EVs) with up to 110 kW of power.
The Category B premium was up 1.4 per cent or S$1,566 at S$115,568.
Category B is for larger, more powerful cars with engines of more than 1,600 cc in capacity or over 97 kW of power, or for EVs with more than 110 kW.
The motorcycle category, D, increased 11.5 per cent or S$987 to S$9,589.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
That brings the category to the highest level since October 2025’s first round of bidding, when it was S$9,810.
Category C, applicable to commercial vehicles and buses, was up 2.6 per cent or S$2,000 at S$78,000.
Category E, the open category which can be used to register any type of motor vehicle except for motorcycles, increased by 2.8 per cent or S$3,229 to S$118,119.
SEE ALSO
Looking ahead
Car dealers told The Business Times that retail activity over the past two weeks was normal, so the rise in car category premiums could be attributed to an anticipated rise in premiums for the second round of bidding in March.
“For us, it has been relatively normal, (sales) are neither up nor down. Last weekend was typical, no fluctuations,” said Jason Lim, the managing director of Eurokars Auto, a dealer for BMW.
“If you look at Category E, it’s around S$118,000, and that means people expect it to go up next round. That’s likely because of the three-week break,” he added.
Unlike Category A and B, which can only be used to register on behalf of an owner or company, a Category E certificate is transferable and has a three-month validity. Dealers buy Category E certificates for flexibility in registering cars, or if they expect car COE premiums to rise in the coming rounds.
COE bidding takes place on the first and third Monday of each month, and ends on the corresponding Wednesday. This means that there are sometimes three weeks between rounds, instead of the usual two. Dealers have more time to collect orders and more orders to clear, so premiums usually go up after a three-week interval.
“The industry is always reading the market closely now, that’s because there is a lot of anxiety and a lot of competition from new, aggressive brands striving for market share,” said Nicholas Wong, the chief executive officer of authorised Honda dealer Kah Motor. “So some dealers think, ‘I need to get my COEs while I can.’”
Mind the gap
The close gap between Categories A and B has also meant that some demand has moved from the former to the latter as dealers convince customers to upgrade their cars for less – particularly Chinese EVs.
The typical gulf between Categories A and B is around S$10,000 to S$20,000, but since the reduction in Preferential Additional Registration Fee rebates effective from February’s second round of bidding, the gap has lessened.
Because Category B cars cost more, they have potentially lower rebates if de-registered compared to Category A cars, which observers say might have weakened demand for Category B cars.
In the first round of March bidding, it was S$3,678, resulting in a lower price difference for car models with versions in both categories, which are typically Chinese EVs.
“China EVs often have the same model available in both categories, but European brands don’t usually do this. When the price difference (between categories) lessens, it’s easier to upsell or ‘convert’ the Category A buyer to Category B,” said the sales manager of a European car brand.
Dealers to whom BT spoke said China brands with premium Category B models did well in sales over the past two weeks. These include BYD, XPeng and Zeekr.
“We collected a good number of orders for our Sealion 7 Category B version,” said Anthony Teo, managing director of BYD distributor and dealer Vantage Automotive.
Its price list dated Mar 9 indicated that the price difference between the Sealion 7’s Category A and B models was S$14,500, down from S$23,500 in January.
As for the spike in motorcycle COE premiums, observers pinned that on a combination of increased demand ahead of the holidays.
“The motorcycle premium was up that much simply because the next round is in three weeks, and Hari Raya (Puasa) is coming, so riders want their new bikes before then,” said Kah Motor’s Wong, who is also head of Honda motorcycle distributor Boon Siew Singapore. Hari Raya Puasa falls on Saturday.
“There have also been lots of road shows feeding demand,” Wong added.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
